Mortgage Rates Bounce Off Record Lows
NEW YORK, October 12, 2012 - Mortgage rates increased following a better than expected jobs report for the month of September. The benchmark 30-year fixed mortgage rate increased to 3.59 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.44 discount and origination points.
The average 15-year fixed mortgage rate rebounded to 2.88 percent and the larger jumbo 30-year mortgage to 4.19 percent, both at levels seen two weeks ago. There were new record lows on some adjustable mortgage rates, with the 3-year and 10-year ARMs plunging to 2.72 percent and 3.24 percent, respectively.
The September employment report beat expectations, with the unemployment rate dropping to 7.8 percent and upward revisions to job growth in the two preceding months. This took away just a bit of the nervousness about the economy, pushing bond yields and mortgage rates higher. Mortgage rates are closely related to yields on long-term government bonds.
The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 3.59 percent, the monthly payment for the same size loan would be $908.17, a difference of $333 per month for anyone refinancing now.
30-year fixed: 3.59% -- up from 3.52% last week (avg. points: 0.44)
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.